A Manager Wishes to Estimate an Average Cost Equation of the Following

Multiple Choice

A manager wishes to estimate an average cost equation of the following form: $C = a + b Q + c Q ^ { 2 }$ where Q is the level of output.Letting Z = Q² and using least-squares estimation,the manager obtains the following computer output: Given the above information,when output is 20 units,what is average cost?

A) $160
B) $200
C) $280
D) $340
E) $360